Zim land reforms: 99-year-leases 'now bankable, transferable', says official

2018-02-09 08:30
John Mangudya (File: AFP)

John Mangudya (File: AFP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Harare – Zimbabwe's reserve bank governor, John Mangudya, has reportedly said that local banks have agreed to finance farmers after government tweaked the country's 99-year land leases to be "transferable and bankable".

According to the state-owned Herald newspaper, farmers were now going to be able to use their farms as collateral when obtaining loans, following the landmark development set to change the agricultural sector.

The southern African country’s financial institutions were previously refusing to lend money to farmers, arguing that they were not transferable in the event that the farmers were unable to repay their loans.

But following talks with government, the Reserve Bank of Zimbabwe and the bankers, it was agreed that the 99-year-leases were now bankable.

"In line with the current economic dispensation’s aspirations to transform agriculture into viable business proposition and taking into account the significant improvements made by government on the 99-year leases to enhance the security of tenure of the lease and making it bankable and transferable, the [Reserve] Bank has agreed with banking institutions for them to accept the 99-year-leases as security for accessing credit from financial institutions in line the provisions of the leases," Mangudya was quoted as saying.

He said that if government decided to take someone’s farm, the banking institutions as financiers would be compensated.

Right direction 

This came a week after Zimbabwe’s white farmers said that they remained cautious over the new country's new land policy, which now allowed them to lease the land for 99-years.

Under ex-president Robert Mugabe's government white farmers were allowed to lease the land for only 5-years.

But, Mnangagwa's government has scrapped that policy, with the country's eight acting provincial resettlement officers being told recently that "there should be no more restrictive 5-year leases to white farmers".

The Zimbabwe Commercial Farmers' Union (CFU) director, Ben Giplin, said that the new government criteria on who will get land sounded "narrow for now".

Giplin said, however, it was an important step in the right direction for the new administration to change the country's decade old land policy.  

KEEP UPDATED on the latest news from around the continent by subscribing to our FREE newsletter, Hello Africa.

FOLLOW News24 Africaon Twitter and Facebook. 

Thousands of white commercial farmers and their employees were displaced and left without sources of income during the fast-tracked agrarian reforms that were masterminded by Mugabe's administration in 2000.

According to the CFU, more than 4000 white farmers were affected by the often violent farm invasions.

Some of the white farmers that were kicked out of their properties during the agrarian reforms have now set base in neighbouring countries such as Malawi, Mozambique and Zambia.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Inside News24

 
/News
Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.